"The countries that were tied together in the gold standard system represented to a not inconsiderable degree a community of interest in and responsibility for the maintenance of economic and financial stability throughout the world," recounted Aldoph C. Miller, member of the Federal Reserve Board from 1914 to 1936, in The Proceedings of the Academy of Political Science, in May 1936."The gold standard was the one outstanding symbol of unity and economic solidarity which the nineteenth century world had developed."
"In this way, the gold standard system became in a very real sense a regime or rule of economic health, a method of catching economic disturbances in the bud."
"Russia up to the very moment of rupture [with Japan, 1904-1905], was working imperturbably at the progressive consolidation of her finances," reported Karl Helfferich of the University of Berlin, at a meeting of The Royal Economic Society [UK] in December 1904."Even in years of industrial crises and defective harvest, her foreign trade showed an excess of exports over imports more than sufficient to compensate payments sent abroad. And, as guarantee her monetary system she has succeeded in a amassing and maintaining a vast reserve of gold."
"During panics in Britain in 1847 and 1866, when cash payments were suspended, the floodgates of cash were opened [by The Bank of England], the governor sent word to the street that solvent banks would be accommodated, and the panic was relieved."
"However, this extra cash and the increased loans that went with it were very quickly put to an end to avoid credit expansion."
"The three chief elements of the policy of a central bank or system of reserve holding institutions are best disclosed in connection with the attitude towards gold, currency and credit."The federal reserve system has met [these] tests on the whole with remarkable success."
"It was, at least in theory, simple enough in the old days," wrote a wistful W. Randolph Burgess, head of the New York Federal Reserve, in 1938."In the present strange new world, where the old gold portents have lost their former meaning, where is the radio beam which the central banker may follow? What is the equivalent of gold?"